Sonatrach launches Skikda LNG reconstruction project

10 September 2004
State-owned Sonatrach has invited companies to apply for prequalification by 6 October for the engineering, procurement and construction (EPC) contract to build a 4 million-tonne-a-year (t/y) liquefied natural gas (LNG) train at Skikda. A tender for the estimated $600 million-700 million contract will be issued once prequalification has been completed.

The project involves the construction of a single LNG train to replace three trains destroyed by a series of explosions at the Skikda complex in January. The project will be financed mainly by the $500 million insurance pay-out Sonatrach received following the blasts, with the remaining costs funded by the company. Construction is expected to take 38-44 months.

Sonatrach originally invited in August three consortia led by Fluor Daniel, Bechteland Kellogg Brown & Root, all of the US, to bid for the contract. However, as the scheme is part-financed by a state-owned firm, the project will be publicly tendered in accordance with local law.

The explosions destroyed three of the six LNG trains at the coastal complex. Prior to the incident, Skikda produced about 4.4 million t/y of LNG (MEED 5:3:04; 23:1:04)

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